• Inside Labour

    The 'casualisation' of the workforce is often a ploy to cut costs, says Terry Bell.

  • When drones go dancing

    Drone technology's future is about to come to life in Cape Town, says Arthur Goldstuck.

  • Testing times for Matona

    New Eskom CEO Tshediso Matona has his work out cut out for him, says Mzwandile Jacks.

Data provided by iNet BFA
Loading...
See More

State to merge small business agencies

Apr 12 2011 12:21 I-Net Bridge

Related Articles

IDC to finance Zim firms

IDC grants R750m for farmer relief

R10bn jobs loan scheme unveiled

IDC billions to boost industry

IDC commits to R3bn lifeline

IDC to invest R10bn in green jobs

 
Cape Town - Economic Development Minister Ebrahim Patel has sketched out plans to merge several of the government's key small business development agencies under the umbrella of the Industrial Development Corporation (IDC).

In his budget vote speech delivered to parliament on Tuesday, Patel said: "We are planning a two-pronged reorganisation of our agencies in order to strengthen support for small and micro enterprise."

He said that small business funder Khula would have a direct lending facility of R55m this year under the brand of Khula Direct.

Currently, Khula provides funding to small businesses only through financial intermediaries who lend on to small businesses.

The second step follows an announcement by President Jacob Zuma of the intention to combine Khula, the South African Micro-Finance Apex Fund (Samaf) and the IDC small business loan book to improve government lending to smaller enterprises.

"The process has started. We propose retaining Khula as the brand name of a wholly-owned subsidiary of the IDC, with an expanded focus on micro-finance and support for social economy enterprises. We will now consult on this model," Patel said.

On Monday night, Patel said at a press briefing that there would be a phased approach to consolidating the country's development funding institutions, including those at provincial and municipal government levels.

However, he emphasised that such consolidation would not happen at the expense of disrupting the work of those insitutions.

In his budget vote speech, Patel said the department of economic development would transfer R219m to small business development.

"In addition, Khula and Samaf will deploy a further R381m from their own resources, and the IDC a further R2.2bn to promote small and micro-businesses this year, totalling R2.8bn in all for small, medium and micro enterprise support," Patel said. 
idc  |  businesses
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Expanding your business requires capital and banks have stringent lending criteria in place.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...